Easy Office
LCI Learning

Coverage on Part time employee in the gratuity policy ?

This query is : Resolved 

13 November 2009 Dear Sir,

We are a Pvt Ltd Co & having a separate gratuity fund for our employees.

Is it mandatory to give the gratuity policy coverage even too a person on a part time employment with us for a short period , say 9-12 months ??

Kindly reply

Subhash Jha

13 November 2009 Gratuity payble for 5 yr complition of service.

13 November 2009 For the Employees working in Pvt Ltd., has to work for 5 years where the employee is eligible for the Gratuity.
The Calculation of Gratuity is 15*Basic Salary/ 26.


13 November 2009 Details are as.......

Every employee who has rendered continuous service for not less than five years shall be entitled to gratuity on his superannuation or on his retirement or resignation or on his death or disablement in Form - I. In case of seasonal establishments, gratuity shall be payable at the rate of 7 days wages for each season. The maximum gratuity payable under this Act is Rs. 3.5 lakhs.

13 November 2009 Agree with experts

13 November 2009 Dear Sirs,

My actual problem is not the gratuity payment.

We are having a gratuity policy with ICICI pru. & we inform them on each month regarding employees joining / leaving & any salary changes.

They do a fresh calculation of liability on monthly basis & we need to pay to them the difference , if any , arises out of these employment or salary change.

Now, my question is : if it is mandatory to include the salary payable to the part timers too under this scheme , as the person has joined us only in the last month on part time employment ???

kindly reply

Subhash Jha

13 November 2009 If the part timer is comming regularly ie hours are same for each day, or he is comming once in a week, then he is also eligible for gratuity.

For informing icici you have to inform the monthly payment from you. He is also eligible for gratutity.

Please refer to definition of employee under gratutiy it is clearly defined that part time employees are also eligible for payment of gratutiy if they complete 5 years with you in future.



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries




Answer Query